Amazon.com reported a 22% increase in revenue in the first quarter but a hefty decline in profit.
For the three months ended March 31, the e-commerce behemoth said profit fell 37% to $82 million, or 18 cents a share, from $130 million, or 28 cents, a year earlier.
Revenue totaled $16.07 billion, up 22% from $13.18 billion.
Despite the sharp decline in profit, the results came in well ahead of expectations. Analysts polled by FactSet were expecting earnings of 7 cents a share. Revenue, however, came up a tad short, with analysts expecting $16.14 billion.
The profit decline is largely because of Amazon's heavy spending on acquisitions, new distribution centers, global expansion and digital media growth.